Bank closed joint account without approval of other account holder

Categories:
Joint accounts,
Summary:
Astrid had joint accounts with her partner. In late 2022, their relationship deteriorated to the point where she decided to leave the family home she shared with her partner and his children. Four days before Christmas, Astrid discovered her partner had closed a joint revolving credit facility she used to cover living expenses. She called the bank, and it apologised for not having checked with her, a joint account holder, before closing the account. It offered her compensation of $1,000. Astrid did not accept the offer. She complained that her partner’s actions were signs of financial abuse that the bank ought to have acted on. She also complained that the closure of the account had left her without any money. The bank increased its offer to $2,000, but Astrid was still not satisfied and asked us to investigate.
Published:
September 2024

Our investigation

The bank acknowledged it should not have closed the joint account without Astrid’s permission. It was a breach of administrative process: a staff member had failed to contact Astrid. This failure had not, however, caused her any financial loss because she still had access to funds in other accounts. Even so, the bank’s action had caused her stress and inconvenience, as became apparent from listening to recordings of her phone calls to the bank. She had also sought legal advice about the matter

Outcome

We recommended the bank pay Astrid compensation of $2,000 for stress and inconvenience and reimburse her legal costs of $1,000. The bank made this offer,and Astrid accepted it.

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